# In the matter of Apresh Garg vs. Indian Bank (erstwhile Allahabad Bank) & Ors.

> NCLAT judgment dated 2025-05-15. Citation: TCN-2025-NCLAT-00033. The appeal was filed by a Suspended Director of the Corporate Debtor challenging the order…

- **Court:** NCLAT
- **Order date:** 15 May 2025
- **Citation:** TCN-2025-NCLAT-00033
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/apresh-garg-vs-indian-bank-78e2def1

## Summary

### Background

The appeal was filed by a Suspended Director of the Corporate Debtor challenging the order dated 30.01.2024 passed by the National Company Law Appellate Tribunal, New Delhi Bench (Court - II) admitting Section 7 Application filed by Indian Bank (Respondent No.1 herein). The Adjudicating Authority admitted Section 7 Application and appointed Shailesh Verma as RP. The Corporate Debtor obtained financial facilities through a Joint Consortium of Lenders, with Indian Bank sanctioning a Term Loan. Upon failure to abide by the terms, Indian Bank issued a legal notice and filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC). The CD resisted the application, contending that a restructuring proposal was agreed upon, and the loan account was

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## Facts

Agson Global Private Limited (Corporate Debtor) obtained financial facilities through a Joint Consortium of Lenders. Indian Bank, a member of the consortium, sanctioned a Term Loan. The Joint Consortium Agreement was executed on 25.10.2017. Indian Bank issued a Legal Notice dated 09.01.2023 to the CD due to failure to abide by the terms of sanction. A Demand Notice under Section 13(2) was issued on 25.04.2023, and an OA was filed before the Debt Recovery Tribunal. Indian Bank filed an Application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) on 10.08.2023, claiming Rs.51,07,40,896/-. The CD resisted the application, arguing that a restructuring proposal was agreed upon in principle, and the loan account was being considered for transfer to NARCL.

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was justified in admitting the Section 7 application filed by …

**Ratio:** The right of a financial creditor to initiate CIRP under Section 7 of the IBC is not

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**Reasoning:** The court reasoned that the Indian Bank, as a financial creditor, had the right to

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**Interpretation:** This interpretation clarifies that the initiation of CIRP under Section 7 is a

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**Application:** In this case, the court applied the ratio to the facts by holding that the

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## Parties

- **Judges:** Ashok Bh…
- **Appellants:** Apresh…
- **Respondents:** Agson Global…; Indian…

## Timeline

- **2017-10-25 — Joint Consortium…**: Execution of the Joint…
- **2023-01-09 — Legal No…**: Indian Bank issued a Legal…

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